 |
Definition of 'Earnest Money'
A deposit made to a seller showing the buyer's good faith in a transaction. Often used in real estate transactions, earnest money allows the buyer additional time when seeking financing. Earnest money is typically held jointly by the seller and buyer in a trust or escrow account.
|
 |
Investopedia explains 'Earnest Money'
An earnest money deposit shows the seller that a buyer is serious about purchasing a property. When the transaction is finalized, the funds are put toward the buyer's down payment. If the deal falls through, the buyer may not be able to reclaim the deposit. Typically, if the seller terminates the deal, the earnest money will be returned to the buyer. When the buyer is responsible for retracting the offer, the seller will usually be awarded the money.
|
-
If you have property to sell and want to avoid capital gains tax, a Section 1031 exchange may be the answer.
Read More »
-
You think your updated house looks great, but potential buyers may not feel the same way.
Read More »
-
Search and compare the best fixed and adjustable mortgage rates in your area with Bankrate.com.
Read More »
-
-
Find why buyers back out and what you can do if you're left holding the bag.
Read More »
-
Discover how owning properties can give you a roof over your head or a check in your pocket.
Read More »
-
Real estate land speculation is a way to get in on a hot investment before a boom hits.
Read More »
-
Discover 10 tips for making a quick sale and a healthy profit.
Read More »
-
Learn the 10 steps that lead up to closing the deal on your new home and taking possession.
Read More »
-
It's the biggest purchase of your life - find out what can go wrong before you even close the deal.
Read More »
|
|
